A monopolist finds the price-output combination that maximizes its profits by
A) equating total revenue and total cost.
B) equating marginal revenue and marginal cost.
C) finding the combination for which the difference between marginal revenue and marginal cost is the greatest.
D) equating price and marginal cost.
Answer: B) equating marginal revenue and marginal cost.
Economics
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The market demand for labor will be
A) insensitive to the wage rate in the short run. B) downward sloping. C) the inverse of the market demand for output. D) perfectly inelastic.
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